Which of the Following Strategies Can Be Employed to Enhance

question 34

Multiple Choice

Which of the following strategies can be employed to enhance the efficiency of an MNE?

• A) pursue scale and scope economies.
• B) pursue scope economies alone.
• C) benefit from inter-country differences in factor costs.
• D) pursue both scale and scope economies, as well as benefit from inter-country differences in factor costs.

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Definitions:

Sale of Receivables with Recourse

A financial transaction where a company sells its receivables to another party but remains liable if the party owing the receivables fails to pay.

Required Disclosure

Information that entities are legally mandated to provide to stakeholders, regulators, or the public within financial statements or reports.

Scheduled Interest

The amount of interest payments that are planned and detailed according to the terms of a loan over a certain period.

Repayment Schedule

A repayment schedule outlines the terms for paying back a loan or debt, specifying the amounts due at each payment interval, the number of payments, and the interest rate applied.